How to bid on Heritage in $1.00 Increments
panther
Posts: 395 ✭✭
OK, how do you get outbid for 1 dollar on Heritage, when you are high bidder going into the live bid. I had a max bid of $300.00. I was then high bid at $250.00. I thought the bids had to be rounded off to the next full bid.
I then lost the bid for $301.00. Any help on this would be great so I know how to bid next time.
I then lost the bid for $301.00. Any help on this would be great so I know how to bid next time.
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Comments
Latin American Collection
While that tactic of bidding $301 so as to just edge someone who bid on the increments to $300 has its upsides, when an off-increment bid shows as the high bid, every bidder knows that the next bid will likely win the lot (unless the bidder who bid $301 raised his secret maximum bid).
These come up at auction all the time, which is sort of funny really. (There's a broad market for them and I'm not sure why people would want to give up the auction commission.) Even though they're $2k coins, they predictably sell within a narrow price range. Bid increments above $2000 are quite large. The first guy to hit the increment usually gets the coin as it doesn't make any sense to bump it up another $200. If you see one you really want, bid a few bucks over the increment and it will almost certainly be yours.....
The same strategy can work with other coins with relatively well-established price points.
I noticed the last Legend-Morphy auction required incremental bids only (no cuts, & no off-increment bids). There's pros & cons to both systems.
<< <i>Sometimes this strategy is really important. Take common-date MS62-MS63 $20 Lib's & Saints.
These come up at auction all the time, which is sort of funny really. (There's a broad market for them and I'm not sure why people would want to give up the auction commission.) Even though they're $2k coins, they predictably sell within a narrow price range. Bid increments above $2000 are quite large. The first guy to hit the increment usually gets the coin as it doesn't make any sense to bump it up another $200. If you see one you really want, bid a few bucks over the increment and it will almost certainly be yours.....
The same strategy can work with other coins with relatively well-established price points.
I noticed the last Legend-Morphy auction required incremental bids only (no cuts, & no off-increment bids). There's pros & cons to both systems.
That $200 increment at $2,000 is kind of excessive IMO. If you want something, it can force you to overpay in order to get it. It can also work to one's advantage.
<< <i>When the bid was at $250 and you were the high bidder, someone bid $301. The bid increment at $200-$299 is $20 which makes a bid of $301 perfectly legitimate as a trump to yours. Bids do not need to be rounded to the next full bid. >>
Wouldn't the winning bid have to exceed the $301 bid by one full increment?
<< <i>
<< <i>When the bid was at $250 and you were the high bidder, someone bid $301. The bid increment at $200-$299 is $20 which makes a bid of $301 perfectly legitimate as a trump to yours. Bids do not need to be rounded to the next full bid. >>
Wouldn't the winning bid have to exceed the $301 bid by one full increment? >>
Every auction shows the next bid value. You can bid this value or any value above it (the secret maximum bid). The system evaluates the bids by increment, or to each bidder's secret maximum bid.
Once the $301 was established as the high bid, then a bid of $325 would be the next minimum bid.
I think everyone gets bitten by the $1 bid difference at least once, and learns from the experience.
The weird thing is that the Heritage Live proxy bid system requires all bids to be at increments or cut values.
<< <i>Sometimes this strategy is really important. Take common-date MS62-MS63 $20 Lib's & Saints.
These come up at auction all the time, which is sort of funny really. (There's a broad market for them and I'm not sure why people would want to give up the auction commission.) Even though they're $2k coins, they predictably sell within a narrow price range. Bid increments above $2000 are quite large. The first guy to hit the increment usually gets the coin as it doesn't make any sense to bump it up another $200. If you see one you really want, bid a few bucks over the increment and it will almost certainly be yours.....
The same strategy can work with other coins with relatively well-established price points.
I noticed the last Legend-Morphy auction required incremental bids only (no cuts, & no off-increment bids). There's pros & cons to both systems.
You may think that a good strategy is to bid over the increment. A dollar might work, but $2 precludes another bidder who does a one dollar overage. $5 over is no real big difference - what is three bucks on a $300 coin - just 1%. $8 over allows you to squeak by the 'lucky seven' bidders and get them out of the picture. $12 will do it almost any time (who is going to challenge with $13 - triskaidekaphobia comes into play). But wait - what if someone cuts you at the auction! Better go $14 over to make sure. Now you are getting close to $325. And so forth.
My point is that trying to chase the off-increment bidding has its downsides as well. A good strategy is to bid close to your max, and bid it early. If your max bid is off-increment and you are the high bidder on the lot at your max bid, you may wish to do a secret maximum bid at the next increment. The perception of an off increment bid is that the current high bidder is at his maximum - so others will typically only bid to the next increment. As your secret maximum bid is at that increment first, you still get the coin.
<< <i>This is the one thing I really hate about HA.com. It's burned me a couple times, absolutely infuriating. >>
It's not so bad when you are the winner but ya it suck to be on the bottom
Michael Kittle Rare Coins --- 1908-S Indian Head Cent Grading Set --- No. 1 1909 Mint Set --- Kittlecoins on Facebook --- Long Beach Table 700
<< <i>
<< <i>Sometimes this strategy is really important. Take common-date MS62-MS63 $20 Lib's & Saints.
These come up at auction all the time, which is sort of funny really. (There's a broad market for them and I'm not sure why people would want to give up the auction commission.) Even though they're $2k coins, they predictably sell within a narrow price range. Bid increments above $2000 are quite large. The first guy to hit the increment usually gets the coin as it doesn't make any sense to bump it up another $200. If you see one you really want, bid a few bucks over the increment and it will almost certainly be yours.....
The same strategy can work with other coins with relatively well-established price points.
I noticed the last Legend-Morphy auction required incremental bids only (no cuts, & no off-increment bids). There's pros & cons to both systems.
You may think that a good strategy is to bid over the increment. A dollar might work, but $2 precludes another bidder who does a one dollar overage. $5 over is no real big difference - what is three bucks on a $300 coin - just 1%. $8 over allows you to squeak by the 'lucky seven' bidders and get them out of the picture. $12 will do it almost any time (who is going to challenge with $13 - triskaidekaphobia comes into play). But wait - what if someone cuts you at the auction! Better go $14 over to make sure. Now you are getting close to $325. And so forth.
My point is that trying to chase the off-increment bidding has its downsides as well. A good strategy is to bid close to your max, and bid it early. If your max bid is off-increment and you are the high bidder on the lot at your max bid, you may wish to do a secret maximum bid at the next increment. The perception of an off increment bid is that the current high bidder is at his maximum - so others will typically only bid to the next increment. As your secret maximum bid is at that increment first, you still get the coin. >>
LOL.
You and your Jedi mind tricks....... that's why I never win anything.